George Osborne warns Scotland that a 'Yes' vote will mean losing the pound
The Chancellor said that a currency union with the rest of the UK would 'not work'
Chancellor George Osborne said today that the rest of the UK would not enter into a currency union with an independent Scotland.
Outlining the implications of a Yes vote in the forthcoming referendum on 18 September, Mr Osborne said such a deal would “not work” and was “not going to happen”.
The Tory went to Edinburgh to deliver the stark message to Alex Salmond’s Scottish Government, which has set out plans to create a “ sterling zone” with the rest of the UK if Scotland break away.
Mr Osborne said: "The SNP says that if Scotland becomes independent, there will be a currency union and Scotland will share the pound.
"People need to know that is not going to happen.
"Because sharing the pound is not in the interests of either the people of Scotland or the rest of the UK."
He said official advice from civil servants on the the key issue of currency was that "they would not recommend a currency union to the Government of the continuing UK".
Mr Osborne said: "Listening to that advice, looking at the analysis myself, it is clear to me I could not, as Chancellor, recommend that we could share the pound with an independent Scotland.
"The evidence shows that it wouldn't work, it would cost jobs and cost money. It wouldn't provide economic security for Scotland or for the rest of the United Kingdom."
He added: "I don't think any other Chancellor of the Exchequer would come to a different view."
Labour Shadow Chancellor Ed Balls and Liberal Democrat Chief Secretary to the Treasury Danny Alexander are expected to take a similar line.
Additional reporting by Press Association
Emergency call 'started off dumb, but got pretty serious'
Britain First criticised for using actress's memory to draw attention to their 'hate-filled home page'
Thought you'd seen it all after the Jeremy Paxman interview?
Greatest mystery about the hit BBC1 show is how it continues to be made at all, writes Grace Dent
"History is violent," says the US Army tank commander Don "Wardaddy" Collier
Animal welfare charities have urged the boy band to cut the scenes
Argentinian scored 'rabona' wonder goal for Tottenham in Europa League – see it here
- 1 This 'woman calls police to order pizza' story isn't going where you're expecting
- 2 Watch what happened when food critics were unknowingly served McDonald's
- 3 Jimmy Carr's controversial Oscar Pistorius joke goes a bit too far at the Q Awards
- 4 Ottawa shootings: Bruce MacKinnon's cartoon is the perfect tribute to soldier Nathan Cirillo
- 5 Of course, teenage girls need role models – but not like beauty vlogger Zoella
Isis releases first video showing the stoning of woman accused of committing adultery as her father shouts 'don't call me Dad'
FCKH8: YouTube reinstates provocative anti-sexism video showing young girls swearing
Diwali: What is the festival of lights – and how is it celebrated around the world?
Jimmy Carr's controversial Oscar Pistorius joke goes a bit too far at the Q Awards
Ottawa shootings: Bruce MacKinnon's cartoon is the perfect tribute to soldier Nathan Cirillo
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Thousands with degenerative conditions classified as 'fit to work in future' – despite no possibility of improvement
Residents should throw a street party and mix with immigrant neighbours, councils told
Attacks on 'Ukip Calypso' show how skewed people’s priorities are
£350 Per Day: Clearwater People Solutions Ltd: Our client based in Reading are...
£10 per hour: Randstad Education Chelmsford: Are you an experienced note taker...
£4800 - £33600 per annum: Randstad Education Manchester Secondary: A full time...
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...